The billionaire subprime short-trader in the 2008 financial crash said that digital assets have a “limited supply of nothing.”
Speaking in a recent interview, subprime short investor and billionaire portfolio manager John Paulson criticized the volatile nature of digital assets, while advocating for investments in traditional safe-havens such as gold.The co-founder of Paulson & Co, a New York-based firm launched in 1994, Paulson was a historic beneficiary from the US housing financial market collapse of 2008 after placing a legendary successful short position.However, Paulson recently took the decision to devolve his hedge fund into a family office after a 76.5% reduction in assets under management value from a peak of $38 billion in 2011 to $9 billion in 2019.In the interview, Paulson was asked his views on the emerging cryptocurrency market, to which he claimed that the assets have a “limited supply of nothing” and “no intrinsic value”, citing the heightened volatility of the nascent space, in comparison to the relatively stable traditional markets as a reason to be deterred from investing.He also mentioned his inability to identify the same asymmetrical patterns noted in his legendary trade a decade earlier, an opportunity where the market seemingly offered little to no downside risk, while providing enormous upside potential.Paulson concluded his thoughts on the question of believing in cryptocurrencies with the stern response, “Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless. Onc
